Today's Labour News

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gavel thumb100 In an informative and detailed report, BusinessLive writes that it has been 13 months since the Constitutional Court (ConCourt) handed down a landmark ruling on the illegality of certain practices in the administration of garnishee orders, but for many of the applicants in that case life is just as bleak.  

Activists claim that fee-gouging and fraudulent court orders continue unabated.  Emolument attachment orders (EAOs) are sanctioned by courts as a solution to the "problem" of debtor default.  Most of what is called "garnishees" in SA are actually EAOs.  Five main "loopholes" are used to abuse the Act, but the ConCourt dealt with only two.  Debtors report signing blank consent forms or being bullied into consenting to jurisdiction changes.  They also report consenting to judgment (a method of skipping through some of the main steps in obtaining an EAO).  There have been accusations of clerks being bribe and approving whatever is put in front of them.  Clark Gardner of Summit Financial Partners, which works with public and private payrolls to audit garnishees on the books, says the biggest issue with garnishees is garnishees not passed by the court.  "These are fraudulent orders," he indicated.

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